What is CEX (Centralized Exchange)?
A centralized exchange is a custodial platform — like Coinbase or Binance — where users deposit funds and trade through an internal order book. CEXs offer convenience and liquidity but require trusting the operator with custody, solvency and compliance.
Why CEX (Centralized Exchange) matters
Understanding CEX (Centralized Exchange) is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the General category sit at the foundation of the broader stack — get them right and the rest is far easier.
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Related terms
- DEX (Decentralized Exchange) — A smart-contract-based trading protocol.
- Wallet — Software or hardware that manages your private keys.
- Custody — Who controls the private keys.
More general terms
- Altcoin — Any cryptocurrency that is not Bitcoin.
- Cryptocurrency — Digital money secured by cryptography on a blockchain.
- Stablecoin — A cryptocurrency designed to track a stable reference value.
- Whitepaper — The technical document describing a protocol's design.
- KYC (Know Your Customer) — Identity verification required by regulated services.
- AML (Anti-Money Laundering) — Regulations preventing illicit financial flows.
- Tokenomics — The economic design of a cryptocurrency.
- Market Capitalization — Circulating supply × price.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.